Lloyd’s of London, the insurance behemoth, is backing a brand-new policy on protecting from hacks cryptocurrency that’s being held in wallets.
The insurance is provided by the crypto lifestyle service provider Coinbase and underwritten by the Atrium insurance syndicate of Lloyd’s, said Coincover on Sunday. When it comes to the liability policy, this is said to be a type of insurance that’s new and has a dynamic limit increasing or decreasing, according to prices of the crypto assets it covers.
Coverage Limit Starts at $1,280
The limits of the coverage start from 1,000 pounds ($1,280). With the policy, traders and investors will be protected against theft of crypto held in their hot or online wallets. The Lloyd’s head of innovation, Trevor Maynard, said the company he’s working for is a “natural home for insurance innovation because of the unique ability of syndicates to collaborate to insure new things” and that cryptocurrency firms have found ways to protect from theft the digital assets of their clients.
A Panel of Lloyd’s Underwriters Backing the Policy
TMK and Markel, both Lloyd’s underwriters, are backing the new policy among others. They’re also Lloyd’s Product Innovation Facility (PIF) members. PIF is an initiative that aims to speed up the development of insurance products for non-standard and complex risk policies.
Coincover was created in 2018. It offers insurance for assets held in the BitGo wallets. The claims with Coincover need to be made after providing details about the incident and filling out a report with the police. After this, the company investigates the claim and pays damages in only 48 hours. Crypto assets that have been willingly sent to a wrong address are not covered by the new policy.
Coincover’s CEO, David Janczewski, said the beginning of 2020 has heated up the crypto market and many industry players have started to be more and more interested in having their assets protected. He also mentioned that:
“With this innovative new policy, we can remove these barriers and broaden the appeal of crypto. It represents another step forward in enabling cryptocurrency adoption.”